G-20 AGREES TO 6-MONTH EXTENSION ON DEBT RELIEF OF POOR NATIONS
Finance chiefs of the Group of 20 major economies agreed to extend their debt relief program for poor nations by six months beyond the end of the year to allow them to continue to take measures against the coronavirus pandemic, Keita Nakamura reported for Kyodo news agency.
In a joint statement released after their videoconference, the G-20 finance ministers and central bank governors also endorsed delaying a multinational deal on new taxation rules for globally operating technology companies like Google LLC and Apple Inc. to mid-2021.
On the global economy, they noted signs of recovery from the pandemic but also said the pace of upturn has been uneven among the member nations and that downside risks remain.
"In light of the continued liquidity pressure, while progressively addressing debt vulnerabilities, we agreed to extend the DSSI by six months," the communique said, referring to the debt relief effort, called the Debt Service Suspension Initiative. The finance chiefs also said they will discuss in April whether a further six-month extension will be necessary. Launched in May by the G-20 and Paris Club traditional creditor nations, the initiative aims to enable developing countries to spend more on fighting the health crisis. The focus was on whether China, a major creditor to the developing world, would support the extension of the program.